Beginners: Learn the Basics of Swing Trading
In this section you will learn the basics of swing trading. The first thing that you have to know is that stocks move in predictable patterns in all time frames. These patterns consist of stages, waves, and trends.
- Learn how to use stage analysis.
- Learn the basic Elliott wave pattern.
- Learn why you should trade trending stocks.
- Learn how to draw trend lines.
- How to predict a change in the trend.
To help us better see these stages, waves, and trends, we use moving averages...
Stocks also move up or down to price areas in the past and reverse. This is known as "finding support" or "running into resistance".
But why? Why do stocks move in predictable patterns over and over again? They do because it is humans that are moving them! And humans are quite predictable. So, you need to understand the psychology behind these movements. Important: The stock chart on the following page is critical to learning how to trade stocks.
How significant is a move in the stock price? You can find out by looking at the volume.
Now that you have a basic understanding of price movements and the psychology behind these movements, it is time to start learning how to read stock charts.
- Learn how to read candlestick charts.
- See my top 10 favorite candlestick patterns.
- Learn how to trade a doji candlestickk pattern.
- Learn the basics behind reading a stock chart.
- Learn how to read stock charts like a book.
Are there any secrets to trading stocks?
Many times you will hear traders talking about "the holy grail" of trading. Is it some magical technical indicator? Nope. Is there a holy grail to trading stocks? Well...kind of.
Got an online broker yet?
If not, it is time to open an account. There are quite a few brokers to choose from but don't worry about it too much. It's fairly simple to switch to another broker if you don't like yours.
- Learn about how to choose a broker for swing trading.
- (this is the broker I use.)
You are now finished with the basics of swing trading. Go on to the next section to learn my swing trading strategy!